By D.C. Stribling
Los Angeles-based real estate investment firm CGI Strategies has acquired Cane Island, a 166-unit apartment community in at 5251 Cane Island Loop in Kissimmee, Fla., for $25.8 million. The seller in the off-market deal was D.R. Horton.
Developed originally as a condo project in 2007 by the seller, Cane Island features two-, three- and four-bedroom units ranging from 1,195 square feet to 1,560 square feet. The property is around a large pond on a 16-acre site. Common amenities include gated entry, clubhouse with game room, fitness center and sauna, and a resort-style pool.
CGI will be treating Cane Island as a value-add play. The new owner is planning such improvements as light interior renovations and color schemes, and updating the clubhouse and fitness center. It will also enhance the pool and spa area by adding cabanas and outdoor cooking stations, and adding a new dog park and Internet café.
South Orlando a High-Growth Market
Cane Island was 98 percent leased at the time of the sale. Not included in the sale are 94 units that were sold as condominiums in 2007, before the recession dried up condo sales. With the acquisition of Cane Island, CGI’s Orlando portfolio totals 526 multifamily units.
“The tourist corridor in south Orlando is one of the highest-growth markets in the entire state, and continues to draw significant interest from buyers,” said ARA Director Ryan Moody who, along with director Scott Ramey, executive managing director Patrick Dufour, vice chairmen Richard Donnellan and Marc deBaptiste, represented the seller in the deal.
“Opportunities to acquire a 2007-vintage asset in this submarket are extremely rare, and we were able to secure an aggressive offer from a qualified buyer prior to formally marketing the property,” added Ramey.